Traditional methods of conducting financial transactions commonly consist of an exchange of currency using paper currency, checks, credit cards, and electronic transfers via a financial institution. In more recent years, an ever increasing amount of financial transactions occur electronically and do not require direct contact with a financial institution. Some transactions occur over computer networks, such as the Internet, while other transactions occur using telephone-based systems.
It is commonplace for entities to conduct an electronic payment to complete a transaction. In a typical transaction, information about each party is typically exchanged to facilitate the electronic transaction. Some of this information may be personal or private information that a person may not desire to share with a stranger. For example, a customer may have to provide their address and telephone number during execution of an electronic payment.
Information privacy is a large concern for many people. Often, people take measures to protect their private information to avoid identity fraud, harassment, or other undesirable acts. These acts may occur when another person obtains private or personal information about another and uses it in a fraudulent or malicious act.